Alexander, an Ontario resident, would like to invest in bonds but he is concerned about locking in

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Alexander, an Ontario resident, would like to invest in bonds but he is concerned about locking in a coupon rate in the event that interest rates rise. His investment advisor recommended provincial bonds. Which provincial bond feature(s) reduce(s) the opportunity cost to Alexander of rising rates?

Investors receive regular instalments of principal and interest throughout the life of the bond.

They are redeemable every 6 months

They are purchased at a discount and mature at par.

All of the above.

Related Book For answer-question

Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets

ISBN: 978-0078024061

5th edition

Authors: Frederick S. Hillier, Mark S. Hillier

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Posted Date: Dec 23, 2023 09:54 AM

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Alexander, an Ontario resident, would like to invest in bonds but he is concerned about locking in

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Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets

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